How can a New York couple protect New Hampshire vacation property from creditors?

Full question:

What can a husband and wife (residents of New York) do to protect vacation property real estate in New Hampshire from creditors since New Hampshire does not recognize tenants by entirety?

Answer:

One option is to place the property into a trust with a spendthrift provision. This provision can state that the beneficiary shall not have the authority to sell, mortgage, or encumber the real property during the trust's life. The beneficiary also cannot enter into any contracts regarding the property, except to lease it for a limited time, subject to trustee approval. Furthermore, neither the property nor its income will be liable for any debts incurred by the beneficiary during the trust's duration.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

No, New Hampshire does not recognize tenancy by the entirety. This means that married couples cannot hold property in this form, which provides certain protections against creditors. Instead, property ownership in New Hampshire typically falls under joint tenancy or tenancy in common.